From December 2024 to March 2025, private-sector businesses in Alabama saw a net loss of 3,303 jobs, according to data released by the U.S. Bureau of Labor Statistics (BLS). Gross job losses from closing and contracting establishments totaled 95,520, while gross job gains from opening and expanding establishments were 92,217 during the first quarter of 2025.
Regional Commissioner Victoria G. Lee noted that “the difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 3,303 jobs in the private sector during the first quarter of 2025.” In comparison, the previous quarter saw gross job gains outpace losses by 6,688.
Gross job losses accounted for 5.6 percent of private-sector employment in Alabama during this period, slightly higher than the national rate of 5.4 percent. These losses included both contractions at existing businesses and closures. Contracting establishments in Alabama lost 77,418 jobs—an increase of nearly 2,700 compared to the prior quarter—while closing establishments accounted for another 18,102 jobs lost.
Gross job gains represented 5.3 percent of private-sector employment in Alabama for the same period; nationally, this figure was higher at 5.6 percent. Expanding establishments contributed to most new positions with a total gain of 74,521 jobs—a decrease of over 4,400 from the previous quarter—while newly opened businesses added another 17,696 jobs.
Among industry sectors in Alabama, six out of ten reported more job losses than gains. Transportation and warehousing experienced the largest net decrease with a loss of 2,876 jobs due to high gross job losses relative to gains. The professional and business services sector posted a net loss of just over one thousand jobs. In contrast, education and health services recorded a net gain of just over one thousand jobs—the highest among all sectors measured.
The Business Employment Dynamics (BED) program tracks these changes using data compiled through a federal-state partnership under the Quarterly Census of Employment and Wages (QCEW). BED statistics are available for all states as well as U.S. territories and include breakdowns by industry subsector and employer size class.
Additional information about BED data can be found on the Business Employment Dynamics homepage and in detailed summaries provided by BLS.
The next release covering second-quarter results is scheduled for February 26, 2026.
Individuals seeking more details or requiring accessible formats may contact BLS directly by phone or via Telecommunications Relay Service.
